Correlation Between Biglari Holdings and 437076CA8
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By analyzing existing cross correlation between Biglari Holdings and HOME DEPOT INC, you can compare the effects of market volatilities on Biglari Holdings and 437076CA8 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Biglari Holdings with a short position of 437076CA8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and 437076CA8.
Diversification Opportunities for Biglari Holdings and 437076CA8
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biglari and 437076CA8 is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and HOME DEPOT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOME DEPOT INC and Biglari Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Biglari Holdings are associated (or correlated) with 437076CA8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOME DEPOT INC has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and 437076CA8 go up and down completely randomly.
Pair Corralation between Biglari Holdings and 437076CA8
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 8.23 times more return on investment than 437076CA8. However, Biglari Holdings is 8.23 times more volatile than HOME DEPOT INC. It trades about 0.07 of its potential returns per unit of risk. HOME DEPOT INC is currently generating about 0.0 per unit of risk. If you would invest 15,172 in Biglari Holdings on September 2, 2024 and sell it today you would earn a total of 5,871 from holding Biglari Holdings or generate 38.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Biglari Holdings vs. HOME DEPOT INC
Performance |
| Timeline |
| Biglari Holdings |
| HOME DEPOT INC |
Biglari Holdings and 437076CA8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and 437076CA8
The main advantage of trading using opposite Biglari Holdings and 437076CA8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, 437076CA8 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 437076CA8 will offset losses from the drop in 437076CA8's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| 437076CA8 vs. AEP TEX INC | 437076CA8 vs. US BANK NATIONAL | 437076CA8 vs. Bank of America | 437076CA8 vs. GE Aerospace |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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